Coinbase-backed x402 Adds Batch Settlement to Lower Costs on Micro AI Payments

Coinbase-backed x402 has rolled out batch settlement, a new feature designed to lower costs for high-frequency, low-value transactions used by AI agents.

The update, announced Wednesday by Jesse Pollak, enables payments of less than $0.0001 for on-demand services such as compute and AI inference. This allows AI-driven systems to pay for usage in extremely small increments without incurring high transaction overhead.

In practice, users can deposit ERC-20 tokens into an on-chain escrow while issuing off-chain signed vouchers for each request. Service providers can verify these vouchers instantly to fulfill requests and later combine multiple payments into a single batched on-chain settlement, according to x402 documentation.

Source: Jesse Pollak